BOSTON (TheStreet) -- Hot gadget maker Apple (AAPL) and filtration company Polycore (PPO) are favorite stocks of market strategist and technical analyst Gene Peroni Jr., who favors growth over value even as the economy is stuck in a rut.Peroni, whose father pioneered the "Peroni Method" of selecting stocks using a technical perspective over 50 years ago, says he follows charts and valuation, as well as money flows and relative strength, to find stocks where there is sustainability of a trend.
Carbo Ceramics ( CRR) Company Profile: Carbo Ceramics is the largest supplier of ceramic proppant for fracturing oil and gas wells. The company is also a provider of the world's most popular fracture simulation software. Share Price: $152.38 (Sept. 20) Peroni's Take: Carbo Ceramics, like Polypore, has increased earnings and revenue over the last year. And also like Polypore, Carbo shares have a forward P/E above 20. "It's a higher-priced stock, so it is a bit volatile. But we do like this industry," Peroni says. "We hold Carbo in several different portfolios." From a technical perspective, Peroni says Carbo has a similar pattern to Polypore in that it was making a string of new 52-week highs. "In August it declined quite sharply but has now recovered," Peroni says. Shares of Carbo are up 47% this year and yet are still below the all-time high of $183.34 set in July. "It is trading at its 50-day moving average level, which is another good sign like Polypore," Peroni adds.
Herbalife ( HLF) Company Profile: Herbalife is a network marketing company that sells nutrition and weight-management personal care products. Share Price: $57.91 (Sept. 20) Peroni's Take: Even in a bad economy, consumers want their nutritional supplements. Herbalife shares have soared 70% this year to record highs, and Peroni says the stock has a very strong longer-term trend. "It's a reasonable price-to-earnings ratio," Peroni says. Herbalife has a forward P/E of 16, a slight premium to the broader market. That valuation may be justified considering earnings and revenue were up sharply in the second quarter both sequentially and year over year. "The P/E ratio may look a little high, but there is good growth potential," Peroni says. "There a number of stocks in this particular consumer sector -- personal care -- that are very attractive."